Audit 343464

#2024-001 – Significant Deficiency – Allowable Costs and Cost Principles HOME Funds ALN 14.239 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.302(b)(3) states, “The recipient’s financial management system must maintain records that sufficiently identify the amount, source, and expenditure of Federal funds for Federal awards. These records must contain information necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income, and interest. All records must be supported by source documentation.” Condition During the course of the audit, we noted there was no source documentation for seven expenses tested. Cause The Organization has made a reasonable effort to design proper controls, but has faced challenges in implementing them effectively, primarily with credit card charges and an increase in construction projects. Effect The potential effects of not having supporting documentation on file could include over or undercharging expenses to the federal grants. Questioned Costs $355.59 Perspective Information The finding noted related to seven (7) transactions examined when testing a sample of forty (40) non-payroll cash disbursements. The transactions are all credit card charges that the Organization did not maintain adequate documentation for. Recommendation We recommend having supporting documentation on file for all expenses charged to the Federal grants that shows approval of the expense from an appropriate member of management. View of Responsible Official Please see corresponding Corrective Action Plan.

#2024-001 – Significant Deficiency – Allowable Costs and Cost Principles HOME Funds ALN 14.239 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.302(b)(3) states, “The recipient’s financial management system must maintain records that sufficiently identify the amount, source, and expenditure of Federal funds for Federal awards. These records must contain information necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income, and interest. All records must be supported by source documentation.” Condition During the course of the audit, we noted there was no source documentation for seven expenses tested. Cause The Organization has made a reasonable effort to design proper controls, but has faced challenges in implementing them effectively, primarily with credit card charges and an increase in construction projects. Effect The potential effects of not having supporting documentation on file could include over or undercharging expenses to the federal grants. Questioned Costs $355.59 Perspective Information The finding noted related to seven (7) transactions examined when testing a sample of forty (40) non-payroll cash disbursements. The transactions are all credit card charges that the Organization did not maintain adequate documentation for. Recommendation We recommend having supporting documentation on file for all expenses charged to the Federal grants that shows approval of the expense from an appropriate member of management. View of Responsible Official Please see corresponding Corrective Action Plan.